Issue - meetings

(A report by Christine Marshall, Deputy Chief Executive Corporate Development (S151))

Please note that in accordance with The Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, a recorded vote will be taken on Budget recommendations.

(Members are reminded that if they are two months or more in arrears, they must disclose the fact and not vote on any item to set tax or any decision which may affect its calculation).

The Portfolio Holder – Finance, Councillor Sandeep Ghosh, presented a report by the Deputy Chief Executive – Corporate Development (S151), setting out the detail of the Annual Budget Report 2025/26, the 5-year Medium Term Financial Strategy (MTFS) from 2025/26 to 2029/30, Capital Programme, Capital Strategy, Treasury Management Policy/Strategy and the Annual Delivery Plan for 2025/26.

Members noted that the report also included the recommended level of Council Tax for 2025/26 taking into account pressures including that of the Internal Drainage Board (IDB) levy.

The budget included efficiencies that had been identified to support the short and medium term financial strategy and the remaining efficiency target still to be achieved against which a plan of activity had been developed.

Before presenting the Budget Report, Councillor Ghosh provided an overview of the position since his appointment. He confirmed that in the financial year 2022/23, there had been a budget shortfall of £282,000 without a proactive plan to address efficiencies. In the financial year 2023/24, there had been a budget gap of £664,000 and a dire need for a planned approach. Efficiency targets had been established before every Budget and had been acted on religiously. For the financial year 2024/25, 78% of those targets had been achieved by Quarter 2 and nearly all the debt left by the previous administration had been paid back. All directorates had been informed to make budgets based on previous data and avoid mid-year unplanned pressure on the budgets.

More efficient ways of working for all the services had been encouraged by working closely within the partnership and the special interest group created had resulted in receiving £5 million for this financial year, which was £2 million more than last year.

Improvements in the town and supporting vulnerable residents had been prioritised.

Engagement in communities and businesses was occurring to a greater degree.

There had been challenges and unlike before, where there had been challenges from worldwide events, the current challenges had arisen from changes to Government policy, including significantly less Government support, the removal of the Rural Services Delivery Grant and changes to business rates. Local Government Reorganisation would also result in future challenges.

The enhanced section 25 statement at the end of Appendix 1 set out the risks within the Budget and contingencies. The Internal Drainage Board (IDB) continued to be a pressure, with increased contributions to them of £102,000 included in the Budget resulting in a 45% increase since 2021/22. Lobbying of Government had occurred since October 2022. The national sum provided for IDB support had increased the national sum to £5 million but it was still only a third of the increase seen by councils since 2021/22.

Efficiency targets had been introduced in the Budget since 2022/23 as a result of the legacy of the last administration, reductions in Government funding and the impact of the IDB levy.

The savings target for 2025/26 would be £510,000 and the IDB related target would be £913,000, which would be challenging. A multi-year efficiency plan had been  ...  view the full minutes text for item 70

(A report by Christine Marshall, Deputy Chief Executive (Corporate) & S151)

Councillor Anne Dorrian, Leader of the Council, presented the report which sought approval of the General Fund Budget for 2025/26, including the use of reserves, Medium Term Financial Strategy, Capital Programme and Strategy, Treasury management Policy/Strategy and the Annual Delivery Plan including the approval of Council Tax levels for recommendation to Full Council on 3^rd March 2025.

Councillor Dorrian apologised for the lateness of the report and requested, through the Chief Executive, that the Chief Executive of PSPSL be invited to attend the next Cabinet Briefing to discuss the matter further, including plans for future reports.

The following aspects of the report were highlighted:

·         Increase in costs including pay, contract costs and the IDB levy.

·         Reduction in support from Central Government.

·         New Council Tax Support Scheme.

·         Enhancing events in the town. Councillor Sarah Sharpe was thanked for her work on Boston Brilliance.

·         Increasing pressures from Internal Drainage Boards (IDBs).

·         Proposed Council Tax increase by 3% (equating to a £7.56 increase for a Band D property, or 15 pence per week).

·         Two efficiency targets had been included in the budget in respect of the IDBs and the need for general efficiencies of £511k.

·         New grant awarded - Extended Producer Responsibility Funding (EPR).

·         Funding Volatility Reserve (£400k support) reflecting income changes in 25/26.

·         Leader of the Council and Portfolio Holder – Finance working to make better use of technology and buying power to drive savings, efficiencies and service transformation.

Councillor Dorrian proposed an amendment to recommendation 1(a) to include the reintroduction of the Councillor Grant Scheme, with each Councillor being given £1,000 to allocate to projects within their ward, to be funded from the contingency reserve fund.

Members discussed the recommendations and commented as follows:

·         Concerns were raised regarding the efficiency targets and how they might impact services. It was important to ensure that efficiency measures did not lead to cuts in essential services. The Deputy Chief Executive (Corporate Development) & S151 explained that the focus would be on back-office efficiencies, such as shared expertise, improved procurement processes, and better use of IT systems, rather than reducing front-facing services.

·         The proposed decrease in market stall charges was supported as it would make Boston one of the most competitive markets in the county, which would hopefully attract more traders and boost footfall, ultimately benefiting the local economy. It was highlighted that a new Markets Manager had been appointed and that new initiatives were being investigated in respect of the farmers and makers markets.

·         An increase to auditors fees was noted. The Council was working to minimise any extra fees, for example with a more problematic audit. However, the statement of accounts were up to date.

·         In respect of the IDB Levy, Members noted that the Council had been actively engaging with government representatives to address the issue and to seek additional funding in order to mitigate the financial burden.

·         The importance of the Council Tax Support Scheme in helping vulnerable residents was noted, with emphasis that the scheme could make a real difference  ...  view the full minutes text for item 69